Archive forNovember, 2015

As per the Office for National Statistics, UK’s GDP grew 0.5% q-o-q in Q3 2015, from 0.7% in Q2 2015. The slowdown was mainly due to widening of trade balance to £14.2bn in Q3 2015 compared to £7.7bn in Q2 2015. Moreover, contraction in the manufacturing and construction sector also added to the decline.

As per a survey by GfK, the UK’s consumer confidence index slipped to +1 in November from +2 in October, its lowest in six months.The decrease was primarily due to slowdown in the services sector in the three months ended November 2015.

According to the UK’s Chancellor George Osborne, the economy is projected to grow at a faster pace in the next two years, as investments are expected to increase. As per the Office for Budget Responsibility’s forecast, the UK’s economy is estimated to expand 2.4% in 2016 compared with 2.3% projected earlier. Moreover, the agency upgraded the growth outlook for 2017 to 2.5% from 2.4%.

As per the Confederation of British Industry (CBI), the UK’s sales volume growth balance fell to 7 in November, the lowest in nine months, from 19 in October. However, retailers continued hiring, which led to the corresponding balance for November to reach 29, the highest since November 1988. The agency expects sales to pick up during the Christmas season.

The UK’s Chancellor George Osborne stated that he would increase the budget for the UK’s health services soon. He informed that around £6bn of this increase would be witnessed by next year. Osborne would be presenting a plan for public spending tomorrow.

As per the Office for National Statistics, UK’s public borrowing rose to £8.2bn in October, the highest in six years, from £7.1bn a year earlier. The government’s borrowing stands at £54.3bn till date and has to restrict the borrowing to £15bn between now and April to meet the Office for Budget Responsibility’s (OBR) forecast.

As per the Confederation of British Industry (CBI), a gauge of expectations for manufacturing output in the UK over the next three months fell to -6 from +5 in October, the first decline since November 2012. The total order balance of CBI’s monthly industrial trends survey increased to -11 in the three months to November from -18 in October.

As per the data released by Eurostat, construction output in the Eurozone fell 0.4% m-o-m in September, the first decline in three months, after a 0.5% rise in August. The weak data indicates struggle in the construction sector despite positive environment across other sectors.

As per the Office for National Statistics (ONS), house prices in the UK increased 6.1% y-o-y in September 2015 compared with a 5.5% gain in August. Currently, the average house price is £286,000. The agency stated the pace of growth in house prices is significantly lower than the previous year

As per the estimates published by Eurostat, consumer price inflation (CPI) in the Eurozone grew 0.1% m-o-m in October, after a 0.2% increase in September. The growth was mainly led by a rise in the prices of vegetables and fruits as well as at restaurants.

As per Rightmove, the house price index in the UK declined 1.3% m-o-m in November after a 0.6% increase in October. On a y-o-y basis, house prices rose 6.2% in November vis-à-vis a 5.6% gain in October.

Shares in aerospace group Rolls-Royce sank 19.6% as it is warned that profits will be hit by a fall in demand. This year’s profits are to fall at the lower end of expectations along with projected ‘headwinds’ of £640 million for next year. With a business review being carried out, it is said there will likely be jobs lost within its current 2,000 senior managers.

Dyson vacuum cleaner manufacturer recently lost the bid on changing the European energy labelling laws. Sir James Dyson, the company’s founder, has previously argued that their vacuum cleaners were only ever tested once they were emptied of any dust. Sir James Dyson claimed that the tests were misleading “consumers on the real environmental impact of the machine they were buying”.

The recent cyber attack on telecoms operator TalkTalk could cost in the region of £35m in one-off costs, the company has confirmed. Following the security breach, which divulged some customers’ personal details, all customers will be offered a free upgrade. Chief executive Dido Harding said that despite the hack TalkTalk was “well positioned to deliver strong and sustainable long term growth”. The firm has announced that it expects FY-results to be in line with market expectations.

As per a survey conducted by the British Retail Consortium (BRC), retail sales increased 0.9% y-o-y during 4-31 October 2015, significantly lower than the 3.9% growth in September. This could be partially ascribed to the upcoming ‘Black Friday’ sale in November. Spending on like-for-like basis declined 0.2% y-o-y in October vis-à-vis a 2.6% y-o-y rise in September.

According to the National Institute of Economic and Social Research (NIESR), the UK’s economic output increased 0.6% in the three months ended October vis-à-vis a 0.5% rise reported in the three months ended September. Furthermore, the Bank of England expects the UK’s fourth-quarter economic growth to be 0.6%.

The Bank of England (BoE)’s Monetary Policy Committee retained its benchmark interest rate at the record low level of 0.5%, maintaining an 8–1 vote in favour of no rate hike. The interest rate has remained unchanged since March 2009 and matched market expectations.

According to Markit, UK’s service sector purchasing managers’ index (PMI) increased to 54.9 in October from 53.3 in September. Furthermore, jobs growth in the services sector was recorded at a five-month high.

According to the British Retail Consortium, UK shop prices declined 1.8% y-o-y in October, compared with 1.9% in September. The agency expects a continuous fall in prices going into the Christmas season.

As per Markit, the UK’s manufacturing PMI improved to 55.5 in October, highest in sixteen months, from 51.8 in September. The positive data outweighed the recent slowdown in the manufacturing sector; the market is expected to improve in the fourth quarter.

As per data from the National Bureau of Statistics, China’s purchasing managers index (PMI) stood at 49.8 in October following a similar reading in September, marking its third consecutive month of contraction. However, the new export order component rose to 50.7, the highest in ten months.